Publication of tax guidelines following the adoption of IFRS 17
Publication of tax guidelines following the adoption of IFRS 17
Following the publication of LN 334 of 2024 providing for special tax provisions applicable to insurance companies, the Malta Tax and Customs Administration has issued the Guidelines in relation to the taxation of business of insurance following the adoption of IFRS 17, Insurance Contracts Rules.
The guidelines clarify that elections to defer the tax payment on any adoption gains are available for a period spanning 10 years, from year of assessment 2024 up until year of assessment 2033. An election may only be made once, and the insurer must be fully compliant with all Income Tax, VAT and FSS tax obligations.
The guidelines also establish the election registration deadlines as well as the deadlines with regards to the payment of tax on any adoption gains. It is important to note that specific deadlines apply with regards to the deferral of tax payment on adoption gains, which are different from the statutory tax settlement due dates.
For more info, visit also our article 'Taxation of Business of Insurance following the adoption of IFRS 17'